Owning property of any kind requires a lot of work, especially if you have paying tenants. The average cost of property management varies, but it’s typically between eight and 12 percent of the total rental value.
If you’re thinking of renting property or you already do, is property management worth it?
Read on to learn more about the services you’ll get, so you can decide if it’s the smart choice for you.
Marketing to Tenants
Most property managing companies will check on any vacant properties, making sure nothing is harmed. They’ll also keep an eye on the fair market value of empty homes and units. This helps them consult with you to find a fair market rental price.
The cost of a property manager also includes marketing the property for lease and even processing new tenant applications. The company should also run all background and credit checks and confirm all references.
Your property management company should be handling the rental process from the listing to the lease signing. In these cases, the cost of property management is well worth it.
Cost of Property Management: Accounting
Renting a large building requires a lot of financial prowess. Your property management company should be handling all of the accounting for you.
The accounting should include collecting rent from tenants monthly and paying bills like taxes and utilities. It should also include giving you reports each month so you can look at your financials.
Your property manager should also distribute your monthly income to you in a timely manner. Most reputable property management companies do all of this and more. One example is McSherry Property Management, and you can check them out here.
How Much Do Property Managers Charge?
The fee for most residential property managers starts at around eight percent and can go as high as 12 percent. This is a percentage of the gross rent collected, and prices may be higher in metropolitan areas.
You may be charged a set monthly fee per unit instead of a percentage. If you have multiple properties, ask about a possible discount if everything is managed by the same company.
Vacant units are typically charged a fee, regardless of whether there’s a current tenant living there or not. Remember, they will continue to market the property for you, so that you can get a tenant as soon as possible.
Many property management companies charge additional fees for repair costs. This is to compensate the company for handling the work and getting things done in a timely manner for your tenants.
Take Care of Your Property
As you can see, the cost of property management companies is certainly worth it. If you own property to rent, using a professional property manager can save you money and headaches in the long run.
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